The Following Graph Shows Average Fixed Costs, Average Variable Costs

question 9

Multiple Choice

The following graph shows average fixed costs, average variable costs, average total costs, and marginal costs of production. Average variable cost is minimized when output equals:

• A) 12 units.
• B) 6 units.
• C) 21 units.
• D) 25 units.

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Definitions:

Systematic Desensitization

A behavior therapy used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.

Anxiety-Arousing

Inducing or leading to increased feelings of anxiety or stress.

Counterconditioning

A behavior therapy technique that involves replacing an unwanted response to a stimulus with a desired response.

Psychodynamic Therapy

A form of depth psychology, the primary focus of which is to reveal the unconscious content of a client's psyche in an effort to alleviate psychic tension.